Retirement tax questions

State distribution amounts are rarely included in box 16 on most 1099-R forms that are issued...even if it is taxed by the state involved.

 

Many states just use the box 2a or box 1 amount automatically as the state distribution amount.

 

A couple states  (NY being one) insist on a value in box 16, so those folks usually copy box 2a into box 16 in the software ( or the Federally taxable amount of box 1 if box 2a is empty or undetermined.)

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For my NC forms, the software backfills box 16 with the value of box 2a once I answer a follow-up page question that asks for the State distribution amount.

____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*

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